Freddie Mac (FMCC) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $2.8 billion, up 1% year-over-year, with net revenues of $5.9 billion, a 2% increase driven by higher net interest income and partially offset by lower non-interest income.

• Net worth increased to $62.4 billion as of March 31, 2025, up 24% year-over-year.

• Provided $88 billion in liquidity, financing 313,000 home purchases, refinancings, and rental units; 52% of single-family loan purchases supported first-time home buyers.

• 92% of eligible rental units financed were affordable to middle-income renters.

• Operational streamlining and cost reduction initiatives are underway, guided by new FHFA leadership.

Financial highlights

• Net interest income rose 7% year-over-year to $5.1 billion; non-interest income declined 25% to $750 million due to lower multi-family investment gains.

• Net revenues for Q1 2025 were $5.9 billion, up 2% year-over-year; net income was $2.8 billion, up 1% year-over-year.

• Non-interest expense fell 2% year-over-year to $2.1 billion, mainly from lower credit enhancement and professional services expenses.

• Provision for credit losses was $280 million, mainly from single-family credit reserve build.

• Total assets reached $3.41 trillion, up 1% from December 31, 2024.

Outlook and guidance

• Regulatory changes and operational streamlining are expected to reduce general and administrative expenses and increase revenue in 2025 and beyond.

• House price forecast revised to 4.2% growth over the next 12 months and 2.8% over the following 12 months.

• Management expects continued moderate growth in the mortgage portfolio, with a focus on liquidity, credit risk transfer, and capital adequacy.

• The company remains under FHFA conservatorship, with future business model changes and conservatorship termination timing uncertain.

• Forward-looking statements highlight risks from economic and market conditions, regulatory changes, and government actions.